1. Overview of the Nanotechnology Industry: Drivers & Demand

2. What is Nanotechnology? Size does matter!

3. Nanotechnology: A Definition Design and creation of functional materials, structures, devices, and systems through direct control of matter on the nanometer length scale. Exploitation of novel phenomena and properties on this length scale Length scale is defined as 100 nm or smaller A nanometer = 1/100,000 of the width of a human hair

4. Nanotechnology: Industry Applications

5. Nanotechnology: Product Applications

6. Nanotechnology: Industry Size Global R&D funding: $9.6 billion –Corporate:$4.5 billion –Government:$4.6 billion –VC:$0.5 billion >109 Start-ups have secured VC funding of $1.1 billion since 1998 –40% nanobio –41% electronics & semiconductors –14% specialty chemicals & nanomaterials

7. Nanotechnology: Industry Size 41 publicly-traded companies >300 private companies 500 nano-consumer products on the market 3,996 U.S. “nano” patents Global R&D Funding by region: –U.S.= $4.0 billion –Asia = $3.4 billion –Europe = $2.1 billion Projected revenue for nano-enabled products –$30 billion (2005) –$60 billion (2009)

8. Nanotechnology: Industry Size Dominant Players Technology Development Strength Nanotech Activity Niche Players Ivory Tower Players Minor League Players

9. U.S. National Nanotech Initiative (NNI) Reports to U.S. President; Interagency coordinating activities in 25 Federal agencies Plan is in its 9 th year Cumulative investment is $10 billion: –2009 Budget is $1.5 B 28% - Department of Defense 26% - National Science Foundation 20% - Department of Energy 15% - NIH Addresses: –Energy –Security –Public Health

10. Leading U.S. Nanotech States 1.California 2.Massachusetts 3.New Mexico 4.New York 5.Michigan 6.Texas 7.Maryland 8.Illinois 9.Pennsylvania 10.Ohio Small Times, 2007 Survey

11. Leading U.S. Nanotech States Survey Criteria: Venture Capital (22.5%) Industry Cluster (22.5%) Research (22.5%) Innovation (22.5%) Workforce (10%)

12. Leading U.S. Nanotech Universities MIT University of California-Berkeley Northwestern University University of Illinois- Champaign/Urbana University of Michigan University at Albany/SUNY Cornell University University of Minnesota Small Times, 2007 Survey

13. Nanotechnology Industry Sales By Segment One Estimate……… Segment20032008E %Growth Nanomaterials$ 7.4$21.4+24% Nanotools$ 0.2$ 1.2+47% Nanodevices$ 0$ 6.0N/A TOTAL$ 7.6$28.7+31%

14. NanoBio Nanotechnology Biotechnology Convergence Miniaturization Biology Genetic Engineering Diagnostics Drugs Medical Devices

15. Nanotech Vs. Biotech Space *Chemical Fume hoods/Biological Hoods **Class 10,000 and Class 100,000 rooms ***Temperature and humidity controlled Type of Company Wet* Labs Dry Labs Clean* Rooms Special Warehouse *** ManufacturingOffice BiotechXXXXXXX X NanotechXXXX XX X

16. Typical Nanotech Company University spin-out Initially funded by industry-savvy “angel” investors linked to university Small number of employees (3- 10 people) but can grow quickly –50% growth in space within 12 months Small number of VC’s focused on nanotech industry Many major international companies interested in partnering as technology has broad applications

17. Nanotechnology Summary Nanotechnology is about SIZE: –< 100 nm Strong government backing but some concerns on public safety and risks Nanotech industry is really several industries with size as common denominator: –Nanobio resembles biotech industry –MEMS resembles semi-conductor and sensor industry –Nanomaterials resembles chemical industry –Nanoenergy resembles renewable energy industry Space needs for each company will focus on industry segment!

18. Leading Developers of Nanotech Facilities Forest City Science and Technology Group